Monday, 18 November 2013

Callings for a Poverty Line

PM: We don't need poverty line to help the poorSingapore
is past the point where a poverty line is useful, Prime Minister Lee
Hsien Loong indicated yesterday, as its groups of needy now take
shifting and multi-faceted formHence, the Government's "kueh lapis" approach to social assistance,
he said, summoning a metaphor that Minister of Social and Family
Development Chan Chun Sing used to describe the multi-layered help it
provides to those in need.Speaking to reporters after a Commonwealth summit in Sri Lanka, Mr
Lee weighed in for the first time on recent calls to establish a poverty line in Singapore, after Hong Kong did so in September.

He said that a poverty line like the World Bank's measure of $1.50 a
day was irrelevant in Singapore as there are no "dead poor" here, by
which he means those who are starving and unsheltered.

Lee: ‘Poverty line’ is obsolete“To say as an ideological matter that ‘I must have a proper
definition, and I want to reduce this group to zero’ – I think we have
moved beyond that point and I don’t think that a definition will help us
to improve our schemes,” he said.Lee also dismissed suggestions that a poverty line would help “focus minds” on the issue of the poor in Singapore.“What is important to us is not about whether we can find a
definition with which we can focus minds on the problem, because our
minds are focused on the problem,” he said.read more

Prime Minister Lee Hsien Loong reportedly indicated on
Saturday that Singapore is past the point of where a poverty line would
be useful, adding that the groups of needy now take shifting and
multi-faceted forms.

Lee, who was speaking to reporters after a
Commonwealth summit in Sri Lanka, seemed to agree with the government’s
“kueh lapis” or multi-layered approach to social assistance, reported The Straits Times’ report

The prime minister’s comments come after the Lien Centre for Social Innovation and SMU School of Social Sciences issued a report on Monday which called for an official definition of poverty and one that didn’t base it solely on monetary terms.

Minister Chan Chun Sing prefers to use a "kueh lapis" approach to deal with poverty in SingaporeWhy a Poverty Line is Useful - A poverty line is useful and can be partnered along with our
so-called “kueh lapis” solution. In economics term, both the poverty
line and the “kueh lapis” are “complements” rather than “substitutes”
for one another. We can, and should have both of them, rather than be debating about which one is better.Having no poverty line set in place is akin to having examinations
with no “passing marks”. Without these guidelines, educators are left to
their own judgments or discretion on whether their students have truly
met the minimum standards required. Some may think their students are
doing okay when they are not actually performing well.What a Poverty Line is Not - A call for a poverty line should never be mistaken to be a call for a
welfare state. Those who claim so are simply trying to leverage on
Singaporeans’ biasness towards a “welfare state” and conveniently
utilising it as an argument against a “poverty line”, irresponsibly.read more

Different layers of aid for S'poreans, based on needs: Shanmugam

Foreign Affairs and Law Minister K Shanmugam has said different
layers of assistance are available for Singaporeans, depending on their
needs.He said this at a "Ready for School" event to provide students with bursary and reading workshops on Sunday morningSome 400 kindergarten students from needy families in Nee Soon GRC attended the "WeCare@Nee Soon - Ready for School" event.read moreFocus on helping those with varying needs: PM LeeGiven the different circumstances of those who may need social
assistance, what is crucial is not how poverty is defined, but having in
place various schemes to help those in need and for able people to
assess cases for those who may fall through the cracksPrime
Minister Lee Hsien Loong made these points yesterday (Nov 16), as he
spoke to reporters from Singapore on the sidelines of the Commonwealth
Heads of Government Meeting (CHOGM) in Colombo, Sri Lanka.Mr Lee also revealed that the Parliament prologue, a
mid-electoral point at which Parliament breaks to take stock and conduct
a review, will take place most likely in April after the budget.
Parliament will re-open in May.read more

Debunking the welfare myth

IT
WOULD have jolted its citizens to hear from a minister this week that
possibly
no nation is more "welfarist" than Singapore, familiar
as they are with official discourse over the years refuting the
Western welfare model. The rhetorical assertion by Foreign and Law
Minister K. Shanmugam at a civil society forum was to underscore the
extent to which "every aspect of a citizen's life" is
currently subsidised by the Government.

From the poorest, help has
progressively been extended to the elderly, the young, low-income job
holders and even middle-income earners. Singapore's social assistance
model now covers housing, health care, early childhood care,
education and training, among others.

Real median household income rose 1.6% - It states that “Median household income rose to $7,870 last year, 4 per cent up from 2012, according to a Department of Statistics releaseon Tuesday. After accounting for inflation, the rise was 1.6 per cent from 2012.” According to the Key Household Income Trends 2013 report released today – the Median Household Income from Work Per Household Member only increased in real terms by 1.9% per annum, from 2008 to 2013, lower than the 3.2% per annum from 2003 to 2008.

Income per household member of the 3 lowest deciles? - Average Monthly Household Income from Work Per Household Member Among Resident Employed Households by Deciles – 1st to 10th, 11th to 20th and 21st to 3oth deciles were only $463, $896 and $1,268, respectively last year.

Singapore
does not have an official poverty line. should there be one? and what
are the frameworks that have been used or could be adopted for the
measurement of poverty in this country? the lien centre for social
innovation and smu school of social sciences report on their
investigation into the complex issue of domestic poverty.

Over
the past ten years, Singapore has registered robust economic growth
and consistently ranked amongst countries with the highest GDP per
capita in the world. Over the same period, inequality has risen
sharply. Singapore does not have an official poverty line. However,
the living conditions and incomes of the poorest amongst the
Singapore resident population, while not reaching the level of
destitution experienced in developing countries, nonetheless suggest
that Singapore needs to reassess the way in which poverty is
acknowledged, defined and addressed.

This
concern was reiterated in a dialogue session on poverty in Singapore
held in August 2013. Over 20 representatives from non-profit
organisations working with poor communities were present, and most
concurred that more clearly defining and measuring poverty
would be an important step towards more effectively addressing the
needs of the poor.read more

Growing calls for PAP to stop hiding its Poor from
the World“The
living conditions and incomes of the poorest amongst the singapore
resident population nonetheless suggest that Singapore needs to
reassess the Way in Which poverty is acknoWledged, defined and
addressed.” Lien
Foundation SMUThe
growing presence of poor people in the wealthy city state is becoming
more and more obvious despite begging carries heavy fines or even
imprisonment. There
are calls for Singapore to acknowledge rapidly rising income
inequality by setting an official poverty line.
Hong Kong’s recent decision to set a poverty line as a way to
better identify and assist its poor has prompted a similar debate in
Singapore’s parliament. A
report released on November 11 says Singaporeans are not aware of the
scale and depth of poverty. Meanwhile, a new public awareness
campaign challenges citizens to try living on $5 for a day in a
nation with one of the highest costs of living in the world.read more

In Singapore, Calls for Poverty Line Amid Rising InequalityA
worker cuts tiles as he puts finishing touches on the common area of a
newly completed condominium project in Singapore on Oct. 24. A group of
researchers is calling for a poverty line to be implemented in the
city-state to better account for a widening wealth gap

As Singapore’s decades-long rise in prosperity increasingly shows a
widening wealth gap, this affluent city-state must do more to face up to
the plight of its poor, a group of leading poverty researchers say.

Already, the government is stepping up social spending to help
low-income citizens squeezed by stagnant wages and rising costs. But
policy makers should go further, the researchers say, and better define
what it means to be poor in one of Asia’s leading financial centers.

“Singapore does not have an official poverty line … Most Singaporeans
are not aware of the scale and depth of poverty in Singapore,” the
Singapore Management University’s Lien Center for Social Innovation said
in a report published Monday. “It is time for Singapore to join
comparably developed nations in officially defining and measuring
poverty.”

Singapore poverty in the spotlightPoverty in Singapore affects an unknown number of families [Xu Yuan Duan/Growing Up with Less]Begging is illegal here, under the island-nation's Destitute Persons Act, carrying a fine of up to $3,000 or imprisonment for up to two years for repeat offendersBut
Singapore's poor still can be found, often selling packets of tissues
outside food centres. Or spending the night on benches near their jobs
to save the transport fare home - they are commonly called "sleepers". Or collecting empty soft drink cans out of trash bins.

The poor have no place in Singapore's vaunted success story, but there are growing calls for one of the wealthiest countries in the world to acknowledge rapidly rising income inequality by setting an official poverty line. Hong
Kong's recent decision to set a poverty line as a way to better
identify and assist its poor has prompted a similar debate in
Singapore's parliament.

Poverty (Line) ShyPrime Minister Lee Hsien Loong said that Singapore has moved beyond the
point of "extreme poverty", defined by the United Nations as
living with less than US$1.50 per day.First, this is a red
herring. No one is calling for the official poverty line to be set at
US$1.50 per day. The call is for the Government to set an official
poverty line.Second, is there really no citizen living with less than US$1.50 per day?read more

About three in four unemployed Singaporeans under ComCare's Short
Term Assistance from 2008 to 2012 were placed in jobs either during
their term of assistance or upon graduating from the scheme

During
the same period, about 20 per cent of families on ComCare assistance,
who received case management support, saw their incomes rising beyond
the eligibility criteria for assistance.Minister for Social
and Family Development Chan Chun Sing said this in a written reply to a
parliamentary question by MP for Aljunied GRC, Muhamad Faisal Abdul
Manap.

A report by SMU’s Lien Centre for Social Innovation has called upon
the Singapore government to officially define poverty. It was released
at an SMU forum today (11 Nov).The report, “Measuring Poverty in Singapore: Frameworks for
Consideration”, said that most Singaporeans are not aware of the
country’s scale of poverty due to lack of information. Hence, being able
to measure poverty could lead to greater public support to address the
needs of the vulnerable communities.Officially defining and measuring poverty will help to identify
at-risk households and to measure the performance of efforts to lift
people out of poverty, it said.read more

WSJ Blog, 11 Nov 2013As Singapore’s decades-long rise in prosperity increasingly shows a
widening wealth gap, this affluent city-state must do more to face up to
the plight of its poor, a group of leading poverty researchers say.Already, the government is stepping up social spending to help
low-income citizens squeezed by stagnant wages and rising costs. But
policy makers should go further, the researchers say, and better define
what it means to be poor in one of Asia’s leading financial centers.“Singapore does not have an official poverty line … Most Singaporeans
are not aware of the scale and depth of poverty in Singapore,” the
Singapore Management University’s Lien Center for Social Innovation said
in a report published Monday. “It is time for Singapore to join
comparably developed nations in officially defining and measuring
poverty.” Full storyRelated: Why setting a poverty line may not be helpful: Chan Chun Sing - Singapolitics.sgread more

Help schemes flexible enough for those who don’t meet criteria: Minister Chan

Minister for Social and Family Development Chan Chun SingSocial and Family Development Minister Chan Chun Sing has given the
assurance that there is enough flexibility within the country's help
system to cater to those who may not meet the criteria, but who are
genuinely in need.Speaking in Parliament, Mr Chan said the
government's strategy is to have multiple lines of assistance to help
Singaporeans with differing needs.Last year, more than 1,500
households who did not meet the income criteria were helped under
ComCare, which provides both short and longer term help to families in
need.read moreS'pore is committed to help elderly, vulnerable: Chan Chun Sing

Minister for Social and Family Development Chan Chun Sing
addressing Parliament on Singapore's social safety nets to help needy
SingaporeansSocial and Family Development Minister Chan Chun Sing stressed that
the government is committed to do as much as it can, in partnership with
the community, to take care of the elderly and vulnerable.Parliament
on Monday heard an impassioned speech from Dr Intan, who spoke about
the need to enhance the country's policies against the backdrop of a
widening income gap.

read moreGovernment 'will look out for asset-rich, cash-poor' older SingaporeansThe
Government's move towards a more progressive tax system will help
address the concerns of asset-rich, cash-poor older Singaporeans, Acting
Minister for Culture, Community and Youth Lawrence Wong said yesterdayIn designing its tax system, the Government is "very mindful of this
particular group of sandwiched Singaporeans", he said in response to
concerns raised by residents of Joo Chiat in a dialogueFor instance, it has moved away from using Housing Board flat type as
the qualifying criteria for Budget surplus sharing schemes, he said.These schemes now use the annual value of property, which Mr Wong
said is a "fairer system" because owners of lower-end private property
can also benefitread more

WHY THE MINIMUM WAGE SYSTEM IS NOT POSSIBLE FOR SINGAPORE

Singapore's leaders
had long justified their high salaries by insisting they were necessary
to attract the best managerial and leadership talent to public service.
They insisted that it is probably a bad idea to expect that enough good
politicians and civil servants will fill these positions even though
they can make a lot more money doing something else.

So
why are the top earners in the private sector earning so much money?
Since Gintai is quoting everyday items, I shall do the same. Let's
imagine the amount of wealth generated each year as full pizza, shared
among 10 people. The first man sliced the pizza into 4 quarters,
gingerly place one quarter of it on a plate, smile at the 9 men and then
walks away with the rest of the pizza, still warm and tucked safely in
his pizza box. The remaining 9 men were left looking at each other,
wondering how to divide the remaining quarter among themselves. That
represents how wealth is divided in Singapore.The
above example illustrated that the only way to ensure remaining men
gets a guaranteed (however thin) slice of pizza instead of fighting
among one another feeding off scraps is to have the first man taking
less and leave more behind for the rest. The PAP government's solutions
are based on creating a bigger pizza or even a second pizza but only to
see the same situation happening each time - the majority of the men
left with little to share,

The inaugural Wealth-X and UBS Billionaire Census 2013, released on 6 Nov [Link]
reveals that the global billionaire population reached a record 2,170
individuals in 2013 with their total combined wealth at US$6.5 trillion.
The average wealth of billionaires is US$3 billion.In terms of their possessions, the
average billionaire owns four homes, with each worth nearly US$20
million. The most common luxury holding among the ultra-rich is yachts,
followed by private jets and art.The US tops the list with 515
billionaires having an eye popping net worth of US$2,064 billion. As
much as 66% of the world’s billionaires are in the following top ten
countries

It boils down to this: will you buy a used car from this guy? Transport
Minister Lui Tuck Yew pledged before the House that the discounts given
will more than offset any fare increase in the next fare review
exercise. Maintaining the same poker face, he segued on to the part
about fares not being less affordable for the average commuter, and more
affordable for the low income and disadvantaged groups.Everbody else
pays more. The perverted Pareto principle states that 80% of the effects
(increases) come from 20% of the causes (rebates). Not in this
Singapore version of Tricky Dick's vocabulary is the option of reducing
fares by maximising cost efficiencies and higher productivity.

Big deal, transport firms will give part of extra revenue creamed from
rise of fares to enhance travel vouchers to the poor. Lest we forget,
only half of 200,000 vouchers were taken up in 2011. What was not
collected, was siphoned back into the stash fund of the greedy buggers.

A lot has been said about helping the poor in Singapore, and while it’s heartening to see the leadership coming out to encourage people to help the less fortunate, I’m actually skeptical that such appeals to the general public would hold any clout and actually make life better for the poor.

For one, Singaporeans are not known for their spirit of volunteerism. I’m not saying we’re a nation of heartless and inhumane citizens, but let’s do a reality check: how many people actually come forward to volunteer their time and effort on a sustained basis for the benefit of the destitute in Singapore? Most people would probably think it’s a lot easier to simply donate money, and then get on with their lives.

That is if they bother with donations in the first place. I always believed that in addressing poverty issues, one has to take a very realistic approach, instead of the conventional way that seeks to tug at heartstrings– at the end of the day, what the destitute and underprivileged need are not your emphaties (or is it really sympathies?), but rather real solutions that provide for a roof over their heads and putting food on the table.

There are various categories of being poor in Singapore. (No official line yet, but some are calling for an official poverty line to be defined [t1])

Some could be the old and frail – these are the elderly living on their own, either with no children or children who have abandoned them. They have no means to work and more so if they are sick, they may not be mobile and hence are dependent on others.

We could also have parents not earning enough to make ends meet – partly because they have quite a number of children, in addition to elderly parents so they are the sandwiched generation.